Montpelier Re Holdings Ltd. is an insurance company located in Bermuda. Warren Buffet recently made a stink about how the returns in the reinsurance industry has gone down recently as yield-hungry investors gobble up catastrophe bonds- especially here in the US. While the earnings of these insurers are being squeezed, Montpelier remains cheap on several ratios, including Price to Free Cash Flow, PE and Price to Book. The result is a cheap stock in an industry that continues to do well. The outlook going forward may be diminished but the stocks in this sector reflect it. This particular insurer has bested the S&P over the last few years- and should continue to do so.

Great management, reasonable valuations, clean balance sheet. Disaster claims impossible to predict but considering the managements discipline to avoid contracts when pricing is not favorable this is likely to be a good pick for the long-haul.

After several benign hurricane seasons, the market seems to be getting past its aversion to this stock which originated with their large underwriting losses from Hurricane Katrina. MRH seems on a run to return to more traditional reinsurance company valuation levels which could lead to a mid-$20's stock value (based on $22-23 current book value per share). After that, MRH has to show that it can continue a disciplined approach to pricing and, of course, can diversify its risk portfolio so another Katrina event doesn't happen. I believe they have the right people in place to succeed on all counts.

Great Company with very STRICT underwriting guidelines in regards to their Property Catastrophe Reinsurance Department. When it comes to investment income operations, and Hurricane property Modelling, they swim against the grain